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Does anyone have a link where I can compare Q4 12 results with previous quarters?
Have not bought in, on my watch list though. will see in a few months.
Well for those who don't:
http://www.investinganswers.com/financial-dictionary/real-estate/mortgage-real-estate-investment-trust-m-reit-2968
If you like mreits Div yield why not do some dds on MORL
2x Leverage mreits divs
Armour Residential (ARR) announces an offering of Series B Preferred Stock. Shares will be listed under the symbol "ARR PrB." (PR)
http://seekingalpha.com/currents/post/812351?source=email_rt_mc_readmore
Will Armour Residential's Repurchase Program Offset Its Dividend Reduction?
by Saibus Research
http://seekingalpha.com/article/1072131-will-armour-residential-s-repurchase-program-offset-its-dividend-reduction?source=email_rt_article_readmore&ifp=0
On Monday December 17th, ARMOUR Residential REIT Inc (ARR) had good news and bad news for investors. The bad news is that it had to cut its monthly dividend by 11% from $.09/share to $.08 per share and this will take effect in January 2013. The good news is that it attempted to soften the blow for investors by including a share repurchase authorization of $100M. This represented 5% of Armour's market cap as of December 18th but investors were displeased to see the dividend cut again and Armour's share price fell by 1% on the 18th. Despite this unfortunate event, Armour is still yielding 14.6%. Although no one would confuse ARR's performance with the sterling performance achieved by American Capital Agency (AGNC) or American Capital Mortgage (MTGE), we could see that it generated stronger performance than mREIT heavyweight Annaly in Q3 2012 and YTD 2012. Maybe investors are worried that ARMOUR's CPR prepayment rates in Q4 2012 have up so sharply that ARR no longer can say "at least we're not Annaly Capital Management (NLY)". Armour's 14.6% annualized dividend yield is at least 200bp higher than Annaly's 12.6%. read more »
Any Ideas on when they will announce q1 2013 Div payment?
I give Armour Residential (ARR) a buy rating. The company's dividend coverage ratio and its projected interest income's interest rate sensitivity revealed that Armour has the financial muscle to continue its monthly dividends at the current rate. The company's attractive valuations and heavy recent insider purchases by some of the top officials of Armour make me more bullish on the stock. Therefore, I recommend investors to go long on the stock and benefit from its sustainable dividend yield of 15.4%.
Additionally, the company's charter allows Armour the flexibility to include non-Agency securities into its MBS portfolio. Therefore, I expect the company to tilt its MBS portfolio towards high yielding non-Agency securities under the current economic situation.
MBS Holdings
The company invests primarily in hybrid ARM and fixed rate residential mortgage backed securities that are guaranteed by any government sponsored Agency. Looking at the current situation where the Fed is committed to purchase Agency MBS, the shareholders of Armour Residential approved and amended the company's charter to include non-Agency in the MBS portfolio. This flexibility will allow the management to drive the company smoothly through the current challenging environment. At the end of the third quarter, the company was exclusively invested in Agency MBS. However, given the situation, I believe addition of high yielding non-Agency MBS will benefit Armour Residential by expanding its net interest margin.
Insider Activity
Over the past 3 months 20 insider purchases were conducted by some of the top officials of Armour Residential. On November 15th alone, the Chairman, Co-Chief Executive, a Director, the President and the CFO of the company purchased stocks worth $90,550. This heavy insider activity reflects the company's top officials' confidence in Armour Residential's future.
Are the Elevated Shareholder Distributions in Danger?
Besides offering one of the highest dividend yields, the company offers another benefit of paying dividends on a monthly basis. Armour Residential pays a monthly dividend of $0.09 per share, which makes the annual dividend yield of 15.4% very attractive to income oriented investors. I will attempt to determine the company's dividend sustainability by looking at its dividend coverage ratio and its projected net interest income's interest rate sensitivity.
The following table gives a clear picture of the cash dividend coverage ratio of the past four quarters. The company paid $85.4 million in dividends the last quarter, while it generated $105.8 in operating cash flows. The cash dividend coverage ratio for the most recent quarter comes out to be 1.24 times, while the average cash dividend coverage ratio of the past four quarters remained at 1.1 times.
(click to enlarge)
Looking from the interest rate perspective, the company can sustain its dividends. According to the company's latest SEC filings, the projected net interest income will decline by 3.97% if the interest rates plunge 50 basis points. Armour Residential generated $97.5 million in net interest income during the most recent quarter. Assuming the interest rates decline by 50 basis points, the company will generate $93.6 million, which is still sufficiently above the most recent quarter's dividend payment of $85.4 million.
Both perspectives reveal that the company has sufficient financial muscle to continue its monthly dividends in the near future.
Attractive Valuations
Armour Residential is trading at an 11% discount to its third quarter book value. Compared to this, MFA Financials (MFA) is trading at an 8% discount to its book value. Both the mortgage REITs have similar market cap which is why MFA is considered for comparison.
Comparatively, the large cap mortgage REITs such as Annaly Capital Management (NLY) and American Capital Agency (AGNC) trade at 12% and 3% discounts to their respective book values.
We are doing very well today, 7.50 by next ex-div date.
I wonder what Interest return we will get on the 200k from Righ in July, could be enough to get that brokerage.
Yeah Fins not bad, really need that Brokerage though. Think salaries are bit too high and seems like Matt is trying to raise funds through Trading.
Would be good to have ya here!
Like your DD on IFX* which i'm in also.
BCAP
lol, apparently Matt is good friends with Mr Herman's father and is currently teaching him everything he knows. Wonder what the background of the other 4 Directors Matt is taking on will be.
Oh yeah, not suprised. Use your whole 1 post wisely.
Go BCAP
lol, it certainly will. Everything will fall into place in due time, just need a little patience. Honestly I don't mind being in the 000's for the time being anyways. Gives me a chance to keep accumulating. Not a 2 tik flipper and don't need cash anytime soon. So in no rush.
Go BCAP
I believe BCAP will be the TA for their own stocks eventually.
Will be great news because all the shorts will have to cover and will be alot less manipulation.
Yes they can, some info below
Becoming Your Own Transfer Agent
Even though most companies outsource the transfer agent function, a few large cap companies and some small to mid-sized companies handle their own shareholders by keeping all or some of the transfer agent functions in-house. Here are some reasons why:
The company knows its stockholders. For a company who wants to give special service to its investors, an employee who knows the holders is valuable. Typically, many utilities and banks perform the transfer agent function in-house.
Support resources are available. There are companies that provide software, legal, insurance, overflow processing, training, and consulting support to companies that want to become their own transfer agents.
Consolidation of the transfer agent industry. Consolidation has meant fewer choices, higher fees and less personalized service. A major argument for being an in-house agent is the ability to control one's own destiny.
Here’s what you need to consider if you want to become your own transfer agent:
Your costs Before you commit time, money, and other resources, identify all your conversion and operating costs. Don't overlook a probable termination fee in your current transfer agent contract.
Get up to speed Transfer agency work is not rocket science but there is still a lot to learn. Take full advantage of the software, training, consulting, legal, insurance and overflow processing vendors offer. Become active in the Corporate Transfer Association, the Corporate Secretaries Association, the Securities Transfer Association, or a regional transfer association. Subscribe to industry periodicals. Talk to some of the major in-house transfer agents.
Select a PC based transfer agent system There are a handful of quality PC based systems that were written primarily for transfer agent functions.
Arrange for transfer agent liability insurance The insurance your looking for is called Errors and Omissions Insurance.
Arrange for overflow backup It may not be necessary to buy OCR equipment if the only application is proxy processing or mailing machines if the only application is dividend mailings to stockholders, Use qualified vendors experienced in shareholder services for this type of work.
Learn SEC and state regulations. You need to have knowledge of SEC and state regulations covering the securities industry. As an example, you need to know how long you are required to keep transfer and correspondence logs, correspondence, checks, authorizations and IRS forms.
Yep, and TA not gagged. Anyone any queries on the A/S or O/S Marlene will be happy to answer any questions you may have.
mcunningham@continentalstock.com
Marlene B.Cunningham
Operations Department
17 Battery Place - 8th Floor
New York, NY 10004
Tele: (212) 845-3206
Fax: (212) 616-7611
www.continentalstock.com
fyi
A bit about Michael Eugene Herman, who signed the Tranfer Agent Registration form for Baron Capital
On the Board of Senomyx (Trades at $3.62 Symbol: SNMX):-
Michael E. Herman has served as a member of our Board of Directors since May 2005. Since 2006, Mr. Herman has been serving as President, Herman Family Trading Company. From January 1992 to December 2000, Mr. Herman was President of the Kansas City Royals Baseball Club. From January 1990 to December 1999, he was Chairman of the Finance and Investment Committee of the Kauffman Foundation and was its President from January 1985 to December 1990. From October 1974 to December 1990, Mr. Herman was the Executive Vice President and Chief Financial Officer of Marion Laboratories. Mr. Herman is a director of Santarus, Inc., a biopharmaceutical company, Cerner Corporation, a health care information technology company, and also is a Trustee of Rensselaer Polytechnic Institute and the University of Chicago Graduate School of Business. Mr. Herman holds a B.S. in metallurgical engineering from Rensselaer Polytechnic Institute and an M.B.A. from the University of Chicago. Through Mr. Herman's prior business and financial experience, education and his service on other public company boards of directors he is able to provide operational expertise and leadership skills that are important to the Board, particularly in his capacity as Chairman of our Compensation Committee.
Also on the board of Marion Labs, Nordic Labs, Cerner, Inc., Santarus, Inc.(SNTS $2.82)), , Vail Valley Foundation, and New Enterprise Associates (NEA).(From http://rpi.edu/president/bot/herman.html)
Hi Phil
I am although I can't PM, can you PM me your email address and I will reply. Thanks
Yeah and hopefully we can get this R/S issue resolved asap.
Go BCAP
Go to Molly Malones on Circular Road and have a drink on me, while you think about it.
Out clubbing? should get your priorities straight young lady, lol.
We are trying to get a list together of shareholders interested in buying preferred shares, estimate hopefully 5k each. Are you in?
Maidin mhaith! all
I'm in but not sure yet with how much, let's wait see what Matt says first.
lol, well then maybe Matt broke his heart
Hi Miami
Thanks for heading down there and for the update, much appreciated.
Matt slept with his girlfriend, so a bit of a grudge there.
Hey Braindeadforever, can I ask you one question? what has he failed on so far?
wow, well I'm stunned. Go gettim tiger, lol
lol, yeah we are kinda behind schedule by a qtr but getting there.
well said my friend, but why would we want preferred stocks? we can't flip those can we?
Yeah I mentioned this before
Good article on Reit's
http://docs.fxcorporate.com/mREIT_Parsimony_Research.pdf
I don't have pm also but would like to know. Just post it, doubt it will be deleted.
Sorry to hear that, God Bless her.
Good for you
lol, you will probably have to pay him half of you profits from BCAP eventually for forgiveness. Then he will be well off.
Don't really post much on Boards apart from an other, check it out. IMO it has amazing potential but as always do your DD's. BCA*
Well said, have to say I personally think ARR and AGNC are the best REIT's out there unless I've missed one with as high yield?
Risk in all stocks, not much here in comparison to the pennys I invest in. lol